Was my "new" HDD used?

Yesterday i purchased a "new" 20gb hdd from Sears' clearance rack thinking I got a deal ($58 after tax). I checked the packaging prior to buying to see if it was reduced because it might have been an open box item or refurbished. The package was in perfect condition and sealed. So later that night I snapped on the 20gb hdd only to find files there from the previous owner i assume. There was a music play list, gamer pictures, and a few other things. So my question is, is MS pulling these HDD out of dead Xbox 360's and reselling them as new? If so, I am not mad but disappointed in MS since this is my first Xbox console purchase. I think that's pretty shady and misleading.

Well I know that the hard drive on my premium 360 came preloaded with content shrinking it down to half the capacity, don't remember if it had a play list. If you feel uncomfortable return it. If the new one has the same content on it then its probably MS who placed the content on the drive.

thanks for your reply. I probably won't be returning it because then I would need to send it back to MS and wait for the hdd to arrive and that would take too long. But if it came preloaded with stuff wouldn't that mean it was used before?

I see thanks for clearing that up. I did a search on google and you're right some hdd do come with preloaded content. There was no gamer profile on there so i'm assuming mines brand new. Well that answers my questions. Thanks for your replies!